KARACHI – State Bank of Pakistan’s Monetary Policy Committee (MPC) is slated to meet on December 3, with all eyes on central bank to further cut policy interest rate.
Ahead of the much-anticipated review, market insiders claimed a 150-200 basis point cut, which would mark the fifth rate reduction since the start of this fiscal year.
This expected move is seen as inflation moved down to its lowest in 78 months, providing space for MPC officials to ease interest rates. The much-anticipated rate cut is touted to further growth while keeping inflation in check.
Policy Rate Cut in Pakistan 4
A recent report shared by Karachi-based brokerage house Topline Securities suggests a policy rate cut of 200 basis points (bps). Over two third experts claimed 150-200bps cut, while some eye 250bps drop.
If central bank officials cut the policy rate by over 200bps, it would be around 13.5 percent.
With the fresh cut, the state bank will cut policy rate by an additional 200bps, bringing total reduction to 900bps.
